Savings update: Bank offering up to 2.90% after Bank of England rise

World News

Martin Lewis predicts interest rates will continue to rise

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Atom Bank is one of the few digital banks and is now offering market leading rates after the Bank of England base rate rise. Last week the Bank of England increased the base rate to 1.25 percent, spelling disaster for some debtors but could be a lifeline for savers’ cash.

The base rate now sits at its highest point in more than a decade, with the last time the rate was this high was shortly after the financial crisis in 2008. 

Many banks have been quick to pass on the rise to their mortgage holders and other debtors, but savers have not seen the same increases on their accounts. 

However that is not the case for Atom Bank, whose lowest interest rate on offer is still above the new base rate. 

Atom Bank is an app-based bank, meaning that it has no branches customers can go into and all accounts can be opened online. 

This means people wanting to bank with Atom need to be technologically savvy in order to manage their accounts all online. 

Additionally, Atom does not have a vast array of savings products like mainstream banks may have. 

Their two main savings products are an instant saver and a slight variety of fixed savers. 

The Instant Saver account offers an interest rate of 1.35 percent monthly.

The account can be opened with £0 and can have a maximum of £100,000. 

It operates similarly to an easy access savings account, meaning savers can make withdrawals and deposits whenever they wish. 

Savers need to be aged 18 or older, have a UK current account registered in their name and have the Atom app.

Alongside the Instant Saver account, Atom offers five different time periods on their Fixed Saver, each with varying interest rates. 

The interest rates for the Fixed Saver accounts are as follows:

  • Six month – 1.50 percent
  • One year – 2.60 percent
  • Two year – 2.90 percent
  • Three year – 2.90 percent
  • Five year – 2.90 percent.

Savers can choose on each fixed account whether they would like the interest to be calculated and paid out monthly or annually. 

As the account is fixed savers will not be able to deposit or withdraw funds during the term. 

It also means that Atom cannot change the interest rate until the end of the fixed term. 

The Fixed Saver offers a one week deposit window where savers can put in as much money as they please. 

Savers have until 9pm exactly seven days after they open the account to deposit money, after this period they will not be able to add or withdraw money. 

Savers can open as many Fixed Saver accounts as they like but there is a limit of £100,000 total savings across all of their Atom Bank savings accounts. 

The account also has a minimum deposit of £50. 

Source: Read Full Article